A TSP 76 form is used with Thrift Savings Plans (TSPs). A TSP is only available to someone who is a federal employee, a member of the US Armed Forces, or their family. This particular form is also known as a Financial Hardship In-Service Withdrawal Request. To use this form, the TSP must have at least $1,000 as a blance and the party couldn't have requested a financial hardship disbursement within the last six months. They will also have to prove that they have a financial hardship that meets the qualifications to receive this sort of disbursement.
A TSP-76 form is known as a Financial Hardship In-Service Withdrawal Request. This form is used for requests related to Thrift Savings Plans, which are specialized financial plans available to federal employees, members of the military, and the immediate family members of these parties. This particular form will be used by a participant to request a withdrawal of their savings due to financial hardship.
In order to qualify for this type of withdrawal, the Thrift Savings Plan must have over $1,000 in it and the party must not have made a financial hardship withdrawal in the last 6 months. The participant will also need to demonstrate that they meet the financial hardship qualifications. The TSP-76 form includes a worksheet so this can be accurately calculated. You’ll need to have your monthly income amount handy. This worksheet will not be submitted with the form, but the information calculated with it can be used to fill in the TSP-76.
A TSP-76 allows civilian and uniformed services participants to request a TSP withdrawal for financial hardship while they are still in service.
To qualify for a financial hardship withdrawal, your financial need must be from one of the following four conditions:
To qualify for a hardship withdrawal, your TSP account must contain at least $1,000 of your own contributions and earnings on those contributions. You must not have received financial hardship in-service withdrawal from the same account in the past 6 months. You cannot also have an application pending for an age-based in-service withdrawal at the same time.
To determine financial hardship, you need to fill out the Worksheet to Determine Financial Hardship that is attached to the TSP-76. The worksheet will have you calculate:
A TSP-76 contains the following sections:
To complete a TSP-76, you will need to provide the following information:
Your financial hardship withdrawal is subject to income tax. If you are younger than 59½, you may also have to pay a 10% early withdrawal penalty.
Once you make a financial hardship withdrawal, you cannot contribute to your TSP account for 6 months. If you are a FERS or BRS participant, you will not receive any Agency/Service Matching Contributions during this period.
At the end of the 6-month period, your employee contributions do not automatically resume. You must make a new contribution election using Form TSP-1.
The IRS considers financial hardship withdrawals to be non-periodic payments for income tax purposes.
The TSP must withhold 10% of your withdrawal unless you submit IRS Form W-4P, Withholding Certificate for pensions and annuities with your application.
This form was designed to be read by an optical scanner. If you are printing or reproducing the form, you should ensure that the copies are not resized or distorted. All information should be printed legibly inside the boxes using black or dark blue ink in simple block letters.
